FAQ Calendar Search Today's Posts Mark Forums Read
Go Back   BizForums > Africa > Southern Africa
Home Viewpoints and Forecasting Forums UK Ireland South Africa
Southern Africa South Africa specific news feed

Competition Commission reopens supermarkets investigation

Thread Tools Display Modes
Old 10-07-2014, 10:57 AM   #1
newsroom's Avatar
Join Date: Jun 2008
Posts: 1,155
newsroom is on a distinguished road
Angry Competition Commission reopens supermarkets investigation

The Competition Commission has reopened its supermarkets investigation, it announced on Tuesday.

The commission, which is an entity of the Economic Development Department, says it has received a fresh complaint from the South African Property Owners’ Association (SAPOA).

“SAPOA has requested the commission to relook at the issue of exclusive clauses in long term lease agreements between owners of large retail shopping centres and retail anchor tenants across the country.

“The property owners’ association alleges that these give rise to considerable competition concerns and could amount to substantial prevention or lessening of competition in violation of the Competition Act,” said commission spokesperson Mava Scott.

However, a full scale investigation has not been set up.

“The commission is currently screening the complaint and will make a determination on whether to launch a full-scale investigation or not,” said Scott.

Earlier this year, the commission concluded its investigation into the exclusive leases, looking at local markets across the country where exclusive leases had been agreed and enforced by the three major supermarket groups (Pick ‘n Pay, Shoprite and Spar).

It found that the anti-competitive effects of the conduct could not be demonstrated conclusively.

“The evidence did not meet the test required in order to prosecute the firms involved and therefore the commission took a decision not to refer the matter to the Tribunal.”

The commission expressed concern about the potential dampening effects of exclusive leases on competition, particularly as they affect small competitors and potential entrants to the market.

In addition to the latest complaint, the commission was already addressing the residual competition concerns arising out of the conduct of the respondents through advocacy engagements with key industry stakeholders, including landlords and supermarkets.

The commission is advocating against the parties entering into long term exclusive agreements as by default for each new development and encourage their use only where justified by the investment made by the supermarket in a particular centre.

The commission has also noted the recent High Court judgment, which has upheld such exclusive lease agreements between Pick ‘n Pay stores and Hyprop, the owner of the Cape Gate Shopping Centre in the Western Cape. –
newsroom is offline   Reply With Quote

Go Back  BizForums > Africa > Southern Africa

competition commission, south africa

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

All times are GMT. The time now is 10:48 AM.

Powered by vBulletin®
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
© 2008 - 2015 TheBizSense All Rights Reserved